Commercial & Contractual
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Last editedMay 20261 min read
Understanding the full cost of a provider, and the contractual terms that govern your relationship with them, is essential before making a final decision. This section covers pricing models, fee transparency, volume discounts, proof-of-concept arrangements, and the contractual documentation you should request.
| # | Question | Explanation |
|---|---|---|
| 1 | Can you provide a full pricing overview that sets out your pricing model and the total cost of ownership across the contract term? | Total cost of ownership (TCO) is the most meaningful basis for price comparison. Transaction fees are the most visible line item, but setup costs, monthly minimums, failure fees, and support charges can add materially to the total. |
| 2 | Will your pricing remain fixed for the duration of the agreement, or are costs subject to change? If so, on what basis and with what notice? | Understand whether the price you are quoted is the price you will pay in year three. Ask about increases, volume-based renegotiation triggers, and the process for disputing price changes. |
| 3 | Are there transaction value caps above which supplementary or blended fees apply? | Some providers apply different rates to high-value transactions. If you process large payments, this can significantly affect your effective rate. Ask for the threshold and the rate above it. |
| 4 | Does your pricing include any batch submission fees, per-file charges, or percentage-of-value components that are not captured in the per-transaction fee? | Scheme fees, file submission charges, and percentage-of-value fees are common hidden costs. Ask for a line-by-line breakdown of every fee that could appear on your invoice. |
| 5 | Do you offer volume discounts based on transaction volume or value, and at what thresholds do these apply? | Volume pricing tiers can significantly reduce your effective cost as you scale. Understand the tiers, when you qualify, and whether you need to negotiate these upfront or they apply automatically. |
| 6 | Do you offer an annual price review mechanism to ensure our pricing remains competitive as our volume grows? | A contractual price review obligation protects you against paying above-market rates as the provider’s cost base improves with scale. Ask whether this is standard or needs to be negotiated. |
| 7 | Can you provide a free proof of concept, including all development and integration support, to allow us to validate the solution before committing? | A genuinely free proof of concept is a significant commitment from the provider and reduces your procurement risk. Understand what ‘free’ means: are there scope limitations, time limits, or conditions that could result in charges? |
| 8 | What fee do you charge for processing a refund, and does this differ for partial versus full refunds? | Refund fees vary significantly between providers. For businesses with high refund volumes, this can be a material cost line. Ask separately about refunds via the original scheme versus alternative routes. |
| 9 | What is your charging model for chargeback / indemnity claim handling? | Some providers charge per claim regardless of outcome; others charge only on claims resolved in the customer’s favour. Understand the mechanics and how the cost scales with your dispute volume. |
| 10 | What fee do you charge for initial system training and onboarding support, and what is included? | Training costs are often not captured in the headline pricing. Ask what is included as standard and what attracts additional charges. |
| 11 | Please provide a copy of your standard terms and conditions for our legal team to review. | Always obtain the standard T&Cs early in the process. Changes that seem minor during commercial discussions can have significant legal implications, and legal review takes time. |
| 12 | Can you provide a copy of your proposed Service Level Agreement, including all definitions, measurement methodology, and remedies? | An SLA without clear measurement methodology and meaningful remedies is difficult to enforce. Ask how uptime is measured, what is excluded from the SLA calculation, and what credits you receive if targets are missed. |
| 13 | What is the contract term, and what are the conditions and costs associated with early termination? | Understanding the exit provisions before you sign is essential. Early termination clauses, notice periods, and exit fees can be significant, particularly if the relationship does not work out. |
| 14 | Are there any minimum volume commitments or minimum monthly revenue thresholds in the contract? | Volume minimums can expose you to charges if your payment volumes fall below forecast. Understand whether these are hard commitments or soft targets, and what the penalty for missing them is. |
Sample RFP
Our sample RFP includes all of the questions in this guide and more. You can download it and use it as a template for creating your own.
Note: The questions suggested on this page are intended as a starting place for writing your own RFP. They're provided for general information only: they're not intended to be prescriptive or to provide legal advice. We suggest working closely with your management to develop an RFP that is tailored towards the specific requirements of your business.
